Have we bottomed?

An interesting post from Barry Ritholtz in his blog displays a chart from JPMorgan pointing out 3 lows, each traced after 12 years. Let me post the same here. Yesterday, the S&P breached the 700 level and closed at 696.33 (a 13-year low) while the Dow went further south to 6726, matching 1997 levels. If we are to believe what this chart is showing us, following the patterns created during post-Depression and post-70’s recession, then we might have already bottomed. If you believe so, then… brace for a GIGANTIC rally!!!

I tend to agree though that it doesn’t seem like we’ve already bottomed. With still a lot of mess that needs some fixing, and without any stability in this “bottom” level, there’s just no telling we’re ready to move forward.